NAR's Bylaws prohibit state and local associations from adopting any rule, regulation, practice or policy inconsistent with, or contrary to, any policy adopted by the NAR Board of Directors. (NAR Bylaws, Article I, Section 2.)

The NAR Constitution provides: “All Member Boards must comply with the minimum service criteria established by the Board of Directors. Any Member Board that fails to satisfy the minimum criteria may, after due notice and opportunity for hearing, be expelled by the Board of Directors from membership in the National Association.

Each State Association shall enforce the minimum service criteria for local Boards and Associations within the state. Any State Association which fails to enforce the minimum service criteria may, after due notice and opportunity for hearing, be expelled by the Board of Directors from membership in the National Association.” (Article III, Section 6 )

The following sets forth the procedure to be followed in the event a state or local association violates these sections of the NAR Constitution or Bylaws and such association continues to operate knowingly and willfully out of compliance with mandatory policies adopted by the NAR Board of Directors.

When, in the opinion of the Vice President of Board Policy and Programs, the NAR General Counsel and the Executive Vice President it becomes clear that reasonable efforts have been and will continue to be unsuccessful in convincing an association of the need to comply with a mandatory policy established by the Board of Directors, that conclusion, together with the relevant supporting documentation is provided to the National Association’s President.

The President, through staff, shall invite the non-complying association to meet with a panel of 3-5 members of the Executive Committee appointed by the President, to review the reason(s) for non-compliance.

If the Executive Committee panel concurs in the staff’s assessment, the association would be given a specified time period in which to comply with the relevant policy.

If, after expiration of the specified time, the association continued to fail to come into compliance, a “show cause” hearing would be conducted before a panel of 7-9 different members of the Executive Committee appointed by the President. The state association would be notified of the hearing, be provided with all copies of all relevant documentation, and permitted, at its discretion to submit a recommendation for consideration by the hearing panel.

If, after the “show cause” hearing, the hearing panel concluded that the association’s charter should be revoked, that recommendation would be reported to the full Executive Committee for action. The Executive Committee on behalf of the Board of Directors would make the final decision. If that decision is to revoke the charter, the association’s territory would become unassigned and available.